Demand for AMOLED-Equipped Cellphones to Continue Rising in 2020
October 24, 2019 | TrendForceEstimated reading time: 2 minutes
According to the latest analysis from the WitsView research division of TrendForce, the share of devices featuring AMOLED panels is expected to grow from 32.8% in 2019 to 38.0% in 2020 in the global smartphone marketplace, in response to an ever-increasing production capacity and smartphone makers’ willingness to adopt the technology. In contrast, the market share of LTPS-equipped devices is expected to drop from 41.3% down to 38.6%. The market shares for AMOLED- and LTPS-equipped devices are roughly even, with the former possibly taking the lead in the future.
Boyce Fan, research director at TrendForce, argues that AMOLED panels are able to establish dominance in the high-end smartphone market because of increased adoption by smartphone makers, owing to Samsung Display’s successful pricing strategies; furthermore, AMOLED is the only panel technology that enables the integration of under-display fingerprint sensors. Aside from Samsung and Apple, the largest smartphone makers in China are aggressively incorporating AMOLED panels into their product lines, in turn accelerating the expansion of Chinese panel manufacturers’ AMOLED production capabilities.
Most of China’s growing AMOLED production capacity is dedicated to flexible AMOLED panels. As a result, Samsung Display controls the vast majority of global rigid AMOLED production. The maturity of rigid AMOLED technology, combined with its superior cost and yield, makes it Samsung’s weapon of choice in the fight for market shares, with the implication of reduced mid-range and high-end smartphone LTPS panel shares. TrendForce holds the opinion that, given the constant production capacity of rigid AMOLED panels, should demand increase in 2020, the supply and demand of rigid AMOLED panels will present a balanced or slightly tight market since Chinese flexible AMOLED production is as of yet uncompetitive.
On the other hand, LTPS panels, which once occupied the mid-range and high-end smartphone segments, are now facing an adverse market economy stemming from hypercompetitive prices. As such, profit margins are significantly reduced for panel manufacturers. However, with bezel-less phones becoming the norm in 2019, production speed for Dual Gate TDDI-equipped a-Si HD In-Cell panels is failing to match projected figures. This creates a point of market entry for LTPS panels and an incentive to transform production capacity towards the development of LTPS HD devices, in turn making up for lost high-end market shares in the low-end and mid-range markets. As well, LTPS manufacturers without a reliable customer base are starting to adapt by closing down non-essential production lines and moving towards non-smartphone applications of LTPS panels to alleviate pressure from reduced LTPS demand caused by competition from AMOLED makers.
TrendForce projects a growth in the demand for flexible AMOLED panels, which will affect a further increase in the global market shares of AMOLED-equipped smartphones. In contrast, rigid AMOLED panels have limited growth potential due to supply limitations. It remains to be seen whether LTPS panels can fill the gap left by unfulfilled demand for rigid AMOLED panels and whether this allows LTPS supply and demand to reach a healthy equilibrium.
About TrendForce
TrendForce is a global provider of the latest development, insight, and analysis of the technology industry. Having served businesses for over a decade, the company has built up a strong membership base of 435,000 subscribers. TrendForce has established a reputation as an organization that offers an insightful and accurate analysis of the technology industry through five major research divisions: DRAMeXchange, WitsView, LEDinside, EnergyTrend, and Topology. Founded in Taipei, Taiwan in 2000, TrendForce has extended its presence in China since 2004 with offices in Shenzhen and Beijing.
Suggested Items
Warm Windows and Streamlined Skin Patches – IDTechEx Explores Flexible and Printed Electronics
04/26/2024 | IDTechExFlexible and printed electronics can be integrated into cars and homes to create modern aesthetics that are beneficial and easy to use. From luminous car controls to food labels that communicate the quality of food, the uses of this technology are endless and can upgrade many areas of everyday life.
iNEMI Packaging Tech Topic Series: Role of EDA in Advanced Semiconductor Packaging
04/26/2024 | iNEMIAdvanced semiconductor packaging with heterogenous integration has made on-package integration of multiple chips a crucial part of finding alternatives to transistor scaling. Historically, EDA tools for front-end and back-end design have evolved separately; however, design complexity and the increased number of die-to-die or die-to-substrate interconnections has led to the need for EDA tools that can support integration of overall design planning, implementation, and system analysis in a single cockpit.
Koh Young Showcases Award-winning Inspection Solutions at SMTconnect with SmartRep in Hall 4A.225
04/25/2024 | Koh Young TechnologyKoh Young Technology, the industry leader in True 3D measurement-based inspection solutions, will showcase an array of award-winning inspection and measurement solutions at SMTconnect alongside its sales partner, SmartRep, in booth 4A.225 at NürnbergMesse from June 11-13, 2023. The following offers a glimpse into what Koh Young will present at the tradeshow:
Real Time with… IPC APEX EXPO 2024: Plasmatreat: Innovative Surface Preparation Solutions
04/25/2024 | Real Time with...IPC APEX EXPOIn this interview, Editor Nolan Johnson speaks with Hardev Grewal, CEO and president of Plasmatreat, a developer of atmospheric plasma solutions. Plasmatreat uses clean compressed air and electricity to create plasma, offering environmentally friendly methods for surface preparation. Their technology measures plasma density for process optimization and can remove organic micro-contamination. Nolan and Hardev also discuss REDOX-Tool, a new technology for removing metal oxides.
Nanotechnology Market to Surpass $53.51 Billion by 2031
04/25/2024 | PRNewswireSkyQuest projects that the nanotechnology market will attain a value of USD 53.51 billion by 2031, with a CAGR of 36.4% over the forecast period (2024-2031).